Chandigarh, June 8
Contrary to popular belief, the green revolution failed the small and marginal farmers of Punjab who could not gain from it and now the loan waiver may not benefit many of them as they have taken loans from non-institutional sources.
A study of 200 suicide cases in Sangrur, Bathinda, Mansa and Ferozepur districts conducted by Gurpreet Singh, a scholar of Punjabi University, discloses the green revolution of the late 1970s did nothing for small and marginal farmers in Punjab who, experts say, are in the grip of a suicide wave. The penetration of consumerism and “dowry demands” have put them under economic stress.
According to the study, the agricultural revolution did not create sufficient opportunities for employment resulting in the slow march towards suicides, which started in 1988-91, was moderate between 1991-92 and registered a steep increase post-terrorism from 1993 onwards. Small and marginal farmers account for 80 per cent of all suicides in the state.
Though the Punjab government has identified 5.39 lakh farmers whose total loans of Rs 1,325 crore will be waived, the pattern of suicides in the state since the last more than two decades discloses that a more deserving section will be left out, says economist R. S. Ghumman, who oversaw the study. He says the study stated that economic distress was largely due to smallholdings, a stagnating yield, repeated crop failures and, subsequently, an inability to repay loans, most of which had been taken from non-institutional credit agencies.
“With no relief in sight for those who have borrowed from arhatiyas, only a one-time settlement from money lenders can check suicides in Punjab.” He says there is a provision in the Sir Chhotu Ram Act of 1935 that could be enforced to stop moneylenders from recovering more than the principal loan.
The study revealed that 59 per cent of the loan taken by peasants was from non-institutional sources, with the rate of interest varying from 24 to 36 per cent per annum. On an average, every suicide victim had to pay off a loan of Rs 2.70 lakh. Though the peasants took loan for agricultural purposes yet 87 per cent of the suicide victims used a sizable
amount of the loan for construction of a house and marriage purposes.
As many as 73 per cent of the labourers who committed suicide took loan from non-institutional sources. Almost all the victims used the loan amount for social commitments such as marriage and construction of house.
Economic distress accounted for as much as 80 per cent of all suicide cases with 41 per cent of the deaths allegedly occurring due to outstanding loans and 38 per cent due to debt and crop failure. Surprisingly, social stigma and debt were responsible for only 11 per cent of the suicide cases, while drugs and debt were responsible for only 9 per cent of the deaths.
